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Burka [1]
3 years ago
9

Which of the following statements is CORRECT? a. During a period when a company is undergoing a change such as increasing its us

e of leverage or taking on riskier projects, the calculated historical beta may be drastically different from the beta that will exist in the future. b. If a company with a high beta merges with a low-beta company, the best estimate of the new merged company's beta is 1.0. c. If a newly issued stock does not have a past history that can be used for calculating beta, then we should always estimate that its beta will turn out to be 1.0. This is especially true if the company finances with more debt than the average firm. d. Logically, it is easier to estimate the betas associated with capital budgeting projects than the betas associated with stocks, especially if the projects are closely associated with research and development activities. e. The beta of an "average stock," which is also "the market beta," can change over time, sometimes drastically.
Business
1 answer:
hram777 [196]3 years ago
7 0

Answer:A. During a period when a company is undergoing a change such as increasing its use of leverage or taking on riskier projects, the calculated historical beta may be drastically different from the beta that will exist in the future.

Explanation: Leverage is a term used in Financial investment to mean the use of various borrowing options by an organisation in order to improve its potential to make profit or its potential to be Competitive.

Risky projects are projects known to high a high chances of loss,this type of projects can lead to severe consequence for business Organisations.

the beta of an investment is a measure of the risk which is caused by the exposure of an investment to general market changes as opposed to internal factors that can have severe negative impact on an investment.

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3 years ago
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In the role of a cultural steward, an HR manager primarily:A. administers day-to-day work of managing people.B. facilitates an o
statuscvo [17]

Answer:

(B) facilitates an organization’s culture and helps to build and strengthen or change that culture.

Explanation:

HR manager here refers to human resources manager, someone whose duties tend to revolve in the management and development of a company’s employees. There are many roles that an HR manager can take, from administrative expert (as described by option A), business partner (as described  by option D & E), and of course, a cultural steward.  

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3 years ago
Highway 151 Inc. can further process 2,500 pounds of Product C to produce Product M. Product C is currently selling for $36 per
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Answer:

$27,500

Explanation:

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Cost to produce Product C = $14 × 2500

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Revenue from the sale of Product M = $47 × 2500

                                                              = $117,500

Differential Total Net Revenue of producing Product M

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= $27,500

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2 years ago
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components that should be included when compiling a report to the Minister of labour about employee profile in south Africa.
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3 years ago
Bauer Manufacturing uses departmental cost driver rates to allocate manufacturing overhead costs to products. Manufacturing over
Diano4ka-milaya [45]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Manufacturing overhead costs are allocated based on machine-hours in the Machining Department and based on direct labor-hours in the Assembly Department.

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Manufacturing overhead costs= $ 280,000

Assembly:

Direct labor-hours= 40,000

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First, we need to calculate the estimated overhead rate for each department:

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

<u>Machining:</u>

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<u>Assembly:</u>

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Machining:

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Assembly:

Allocated MOH= 9*75= $675

5 0
3 years ago
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